Choosing a Health Insurance Plan

With the costs of medical care seemingly rising by the day, the need to have a health insurance plan of some kind is becoming more and more important. This is especially true if you have a family where your children’s health needs really need to be attended to. The problem with choosing a health plan is that there are now more choices than ever; to the point where there really isn’t such a thing as a one size fits all form of health insurance. Choosing a health insurance plan that fits your own specific needs, including budget, means taking some time to really look into the different options and deciding which one suits you best.

With any kind of luck, you will work for a company that offers a comprehensive healthcare plan among your benefits, but if that’s not the case, the object becomes making sure you have enough coverage without breaking the budget. Of course, the amount that you have to pay for healthcare coverage could increase dramatically if you or one of the family members on your plan has a pre-existing condition of some kind. Before you make a final decision, let’s take a look at some of the options that will be available to you.

Many families on a budget tend to go with Health Management Organizations (HMO), which is basically a low cost alternative that also delivers fewer options. If you choose an HMO, you will be asked to select a primary care provider that will take care of any and all health issues you may have, For example, if you need to go and see a specialist for one reason or another, you will have to go to your provider first to get a referral. There are pros and cons to having a single provider, but for those of you with a limited budget, this may be the best option.

Another way to save some money is to go with a Preferred Provider Organization (PPO), which is basically where healthcare facilities reach an agreement with insurance companies to offer services at a reduced rate. There is no need to go with a primary care provider in a PPO plan, which means you can go out of network to see a specialist without the need for a referral. The downside with that is that the costs can quickly add up when you do that.

A Point Of Service (POS) plan is basically an amalgam of the two other plans listed above. You have the option to go in network, at which point you will need a referral from your PCP. You may also go out of network, but will pay higher rates and perhaps also be hit with a deductible that you will need to cover. Those are the most common healthcare choices, but there are several others. What it all adds up to is that you really need to take some time to do your homework so you end up with the plan that is best suited to you and your family.